Economy

The Finnish economy is highly industrialized, with a free market economy dominating. According to official data from the World Bank, Finland’s GDP in 2020 is 269.75 billion U.S. dollars, accounting for 0.24% of the world economy. Its GDP per capita is 49,041 US dollars, almost as high as Austria and the Netherlands, and slightly higher than Germany and Belgium. Finland joined the euro system in 1999 and is the only Nordic country to use the euro at present. In the next few years, Finland will integrate more quickly with Western Europe’s economy.

The manufacturing industry is the backbone of Finland’s economy, mainly wood, metal, engineering, telecommunications and electronics. Finland’s communications industry is represented by Nokia, and the country claims to have the highest proportion of Internet access and the highest number of mobile phones per capita.

Finland has a well-developed service industry, with 70% of the employed population in the service industry, which mainly covers industries such as commerce, tourism, finance, communications and public services.

Trade is vital to the Finnish economy, and exports have accounted for more than one-third of Finland’s GDP in recent years. The government is open to foreign direct investment and actively takes measures to attract it. As of November 2021, Finland’s trade balance was -410 million euros, of which imports were 6,925 million euros, an increase of 4.06%, and exports were 6,515 million euros, an increase of 7.33%. The main export commodities are metal, paper, cardboard, and chemical products, and the main import commodities are metal and crude oil. The country’s most important trading partner is Germany, whether it is exporting or importing.

Due to the climate, agriculture in Finland is only maintained at the level of self-sufficiency in basic agricultural products. At the same time, Finland’s climate brings forestry boom. As an important pillar of exports, the forestry industry provides a good career choice for the rural population. The forest industry’s output accounts for 5% of the world’s total, making it the world’s second largest exporter of paper and  fourth largest of pulp.

Finland has been one of the EU’s best performing economies until 2009, and its GDP reached a peak in 2008 of US$284.55 billion. The prosperity and stability of banking and financial markets reduced the adverse effects of the financial crisis happened in 2008. However, the slowdown in world economic growth caused by the financial crisis hit Finland’s exports and domestic demand, causing the Finnish economy to experience a substantial recession from the first quarter of 2008 to the second quarter of 2009, which lasted 18 months and reduced GDP by 8.07%. The recovery of exports, domestic trade and household consumption stimulated economic growth from 2010 to 2011, with GDP reaching US$275.24 billion. However, from 2012 to 2015, the economy shrank again. In 2016, the economy began to recover and continued to prosper. After the COVID-19 outbreak, the country’s GDP dropped by almost 3% in 2020, but is expected to grow again in 2021 and subsequent years.

International Relations

As of 2004, Finland has established diplomatic relations with 165 countries. The country is the member of many international organizations, including the European Commission, Organization for Security and Cooperation in Europe and the United Nations. Finland joined the United Nations in 1955 and has played a major role for many years. In the late 1950s, Finland began to participate in UN peacekeeping operations and other activities, including the development of international law, disarmament diplomacy, and multilateral development cooperation.

Finland’s development policy aims to support developing countries and help eradicate poverty, reduce inequality and promote sustainable development. The policy is based on the goals of the Paris Agreement on Climate Change and the 2030 Agenda for Sustainable Development. The country has pledged to reach the United Nations official development assistance target level, that is, 0.7% of its gross national income will be used for development cooperation and 0.2% will be used to aid the least developed countries. Also, Finland has carried out various forms of cooperation with many African countries. Its bilateral partner countries are Ethiopia, Somalia, Tanzania, Kenya, Zambia and Mozambique, as well as Afghanistan, Nepal and Myanmar.

On the issue of the north and south poles, Finland is one of the eight permanent members of the Arctic Council and a negotiating country for the Antarctic Treaty Consultative Conference, which aims to maintain the natural environment of the Antarctic and achieve sustainable development. In addition, the Nordic countries are Finland’s most natural partners. The Nordic cooperation aims to further promote the movement of citizens among the Nordic countries, and increasingly highlight Nordic’s leadership in climate change, digitalization, and cultural defense matters.

Tourism

In recent years, Finnish tourism grows faster than other industries and becomes more international. Tourism becomes an important growth sector and employment provider for the Finnish economy, accounting for 3% of GDP. In 2019, tourism brought in more than 16 billion euros and is expected to exceed 24 billion euros by 2028. The tourism cluster provided employment to 154,000 people in 2019. Tourism also has a pull effect on sectors such as construction, transport and commerce.

In 2020, accommodation establishments in Finland recorded more than 14.3 million overnight stays, of which more than 12 million were from domestic tourists and 2 million were from international tourists. The number of international tourists visiting Finland has grown quite steadily. Most foreign tourists come from Russia, followed by Germany, the UK, Sweden and China. In recent years, Finnish residents have increasingly opted for domestic vacations, illustrating the rise of climate-conscious travel. The Finnish tourism industry has been hit hard after the outbreak of COVID-19. In mid-March 2020, Finland began restricting cross-border traffic and closing its borders for non-essential travel. International visitor overnight stays fell 68% in 2020 compared to the same period last year.

“Achieving more together – sustainable growth and renewal in Finnish tourism” is Finland’s tourism strategy for 2019-2028. The strategy defines tourism development goals up to 2028 and measures to be taken for the period 2019-2023. Finland aims to be the most sustainable tourism destination among the Nordic countries. Tourism is becoming a responsible service industry, creating benefits and providing jobs across the country.

Now, Let’s talk about the tourist attractions in Finland. The country has more than 1,000 museums, including art museums, cultural history museums, nature museums, and 20 national specialized museums. Although over a third of Finland’s museums are professionally run, the Finns love of culture and history is most clearly seen in the number of locally run museums and galleries present in every town and city.

Lapland is one of the best cities in Finland for viewing the Northern Lights. The best time to see the Northern Lights is during the dark winter months, when the Northern Lights are at their peak from 9pm to 11:30pm, caused by magnetic midnight and disturbances in the Earth’s magnetic field reaching a maximum. After midnight, the incidence of aurora began to decrease, and from 4:00 to 5:00 in the morning, the probability of occurrence dropped to less than 50%. In Lapland, tourists also have the opportunity to see Santa Claus and take pictures with him in his grottoes.

Helsinki on the Baltic Sea coast is a modern city with a population of more than 500,000. It is surrounded by forests, lakes and hundreds of small islands. Helsinki is a blend of modern and historic architecture, and on a hilltop near the city center stands the Uspenski Cathedral, the largest Russian Orthodox church in Europe and a great example of Byzantine-Russian style. In addition to Helsinki, other attractions in the capital region include Espoo and Vantaa, the historic city of Porvoo, the Järvenpää-Tuusula region known for its artistic heritage, and the Iron Works Village west of Helsinki. Although Finland is cold all the year round and shrouded in darkness most of the time, we can still feel the romance and warmth of the residents living here.

By Ellie Niu